WBHO, Stefanutti Stocks and Aveng Africa (“the Contractors”) have engaged positively with the City of Cape Town (“the City”) and have reached an agreement to settle a dispute which dates back to 2014 and relates to the construction of the Greenpoint Stadium, which began in 2007.
Since 2010, the South African construction sector has contracted in scale and capacity, with limited infrastructure spend by government over the last decade, compounded by the lacklustre economy and the Covid pandemic. These challenges have seen several industry failures while others, including Aveng, have divested of their South African construction businesses.
While both the City and the Contractors remain confident of their respective legal positions, it has been mutually agreed that it is in the best interests of all parties to amicably settle the matter rather than prolong an extended and costly arbitration and court process. This will allow for future positive engagements between the City and the Contractors.
The settlement includes a payment of R31,3 million by each Contractor, over the next three years, and a commitment to Corporate Social Investment projects in the City by WBHO and Stefanutti Stocks.